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U.S. Treasury yields slip as traders weigh ADP data and oil prices

The 10-year yield was marked lower at 4.794%, after an earlier 4.818% peak tied to recent rate and energy concerns.

Reported · Written up by our desk · Economy

U.S. Treasury yields fell from recent multi-year highs on Wednesday as investors digested the latest economic data and tracked swings in crude oil prices, which reversed upward after earlier weakness. Reuters reported the benchmark 10-year yield was on pace to end a five-session run of daily gains, with crude moving higher by more than 1% amid renewed focus on supply concerns related to the Iran war. On the labor market side, the ADP National Employment Report showed private employment rose by 38,000 jobs in August, below economists’ expected 48,000 and following a revised 46,000 gain in July. Investors used the report as part of a broader read on whether inflation and employment signals are moving together, Reuters noted. Market participants also pointed to additional forces that have pushed yields higher in recent days, including historically difficult conditions in September, prior comments by Federal Reserve Chair Kevin Warsh, and the ongoing Iran conflict that has lifted energy prices. Reuters added that some analysts are watching whether capital spending by AI companies could crowd out demand for Treasuries. Other economic indicators included Commerce Department factory orders rising 0.9% in July, above the 0.6% estimate, helped by a rebound in aircraft demand. Ahead of Friday’s government payrolls report, the 10-year yield was down 0.2 basis point to 4.794%, after hitting 4.818%, and the 30-year bond yield was unchanged at 5.267%.

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